South Asia Strategy Monitor No. 23

March 31, 2025 Rehna Sheth,  Austin Nye
Related Categories: Democracy and Governance; Human Rights and Humanitarian Issues; International Economics and Trade; Public Diplomacy and Information Operations; Afghanistan; Central Asia; India; Japan; Middle East; Qatar; Pakistan

DOHA DEEPENS ITS STAKE IN INDIA
In mid-February, Qatari Emir Sheikh Tamim bin Hamad Al-Thani made a state visit to India, where he met with Prime Minister Narendra Modi in New Delhi. The meetings yielded a Qatari commitment to invest $10 billion across a range of economic sectors. Building on the historic ties between the two countries, the leaders also decided to the elevate Indian-Qatari relations to the level of "strategic partnership," and agreed to double bilateral to $28 billion over the next five years. Cooperation on infrastructure, technology, and manufacturing are among the priority areas to be targeted as part of this enhanced cooperation. So, too, is energy; as the war in Ukraine and Western sanctions continue to impact Russia's oil exports, India is looking farther afield to fulfill its energy needs. (Economic Times, February 18, 2025; Reuters, February 18, 2025)

PAKISTAN'S WESTWARD PUSH
Last month, Pakistani Prime Minister Shahbaz Sharif made a significant effort to increase investment and expand his country's diplomatic reach via a tour of Central Asia and the Middle East. The effort seems to have paid dividends; in early February, Pakistan and Turkey agreed to increase cooperation in the defense, mining, and economic sectors during a summit between Sharif and Turkish President Recep Tayyip Erdogan. Most notably, Islamabad and Ankara upgraded their existing Preferential Trade Agreement, with the aim of tripling trade as well as creating a special economic zone in Pakistan for industrial production.

Later the same month, Sharif met with Azerbaijan's President, Ilham Aliyev, in Baku, to broker energy agreements and work toward finalizing Azerbaijan's $2 billion investment portfolio in his country. Azerbaijan also agreed to provide Islamabad with liquified natural gas and complete a pipeline in Pakistan that would distribute oil throughout the nation. Finally, during Sharif's visit to Tashkent, Uzbekistan and Pakistan agreed to establish a committee with Afghanistan to move forward on a $4.8 billion railway project that will connect Uzbekistan to Pakistan's various seaports – a project which has been on hold since the Taliban's return to power in August 2021. (Voice of America, February 13, 2025; Voice of America, February 24, 2025; Voice of America, February 26, 2025)

INDIA, FRANCE PLAN SMALL MODULAR NUCLEAR REACTORS
In February, India and France announced that they will collaborate on developing and producing small modular nuclear reactors. These reactors can be assembled in factories and transported directly to the places where they are installed, dramatically reducing the land needed for nuclear energy sites. The agreement marks a significant shift in the Modi government's nuclear policy. New Delhi, which had previously pushed for stricter regulations on nuclear energy, is now opening up to international investment and championing nuclear power as a path to independent and low-carbon energy.

The shift is significant. While traditional energy sources remain an integral part of India's economic progress, Prime Minister Narendra Modi has made clear that he views sustainable energy as equally important, aiming to double the nation's renewable energy capacity to 500 gigawatts by 2030. The development of these new modular reactors, in turn, will be critical to realizing Modi's goal and reducing India's overall greenhouse gas emissions, which are now the third highest in the world. (Forbes, February 12, 2025; BBC, February 13, 2025)

AFGHANISTAN'S TALIBAN HEAD EAST
The Taliban continue to expand their diplomatic and economic engagement with other nations, despite the overall lack of formal recognition as Afghanistan's government. While Taliban officials regularly visit neighboring countries, they rarely seek diplomatic relations outside the region. However, a recent high-level Taliban delegation to Japan – made up of economic, health, and foreign affairs officials – illustrates the group's growing urge to be an "active member of the international community."

While in Tokyo, Taliban representatives sought humanitarian relief as well as a pathway toward future resumption of diplomatic relations with Tokyo. Japanese officials, meanwhile, worked to emphasize the need for more democratic government in Afghanistan and greater human rights protections for Afghan citizens, including greater access to education for Afghan girls. For its part, Japan has resumed diplomatic and humanitarian programs in Afghanistan, and reopened its embassy in Kabul. Official relations have remained off the table, however. (Al Jazeera, February 17, 2025)